Free Trial

Fumio Kishida Quits His LDP Faction Amid Political Funding Scandal


Prime Minister Fumio Kishida confirmed his plans to step down as leader of his faction in the ruling Liberal Democratic Party (LDP) amid the ongoing scandal surrounding political funding.

  • Politics within Japan's dominant political party are mediated through a stable factional structure, with the LDP's overall policy stance and executive line-up reflecting the outcomes of inter-factional bargaining.
  • Kishida's faction ("Kōchikai") consists of 47 lawmakers and is only the fourth largest one after the Abe faction ("Seiwakai"), Aso faction ("Shikōkai") and Motegi faction ("Heisei Kenkyūkai").
  • The Prime Minister's decision comes amid growing criticism over the alleged underreporting of revenue by the party's five main factions, some of which may have been funnelled to lawmakers as kickbacks.
  • Asahi reported that a successor to Kishida as faction head has not been chosen and the post will remain vacant for now as the Prime Minister focuses on damage control amid record-low approval ratings of his administration.
  • It is unusual (but not unprecedented) for a Japanese PM to stay on as faction leader upon taking office. Kishida's decision on that front drew criticism from his predecessor Yoshihide Suga, who earlier this year argued that it "sends a message that faction politics still lingers on, which makes the public more critical".
  • Kishida's resignation as faction leader comes as another instance, in which his decision will likely be assessed as well overdue, following his failures to take timely action on issues ranging from the party's ties with the Unification Church to various scandals involving individuals officials.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.